By Suzanne Anton
Attorney General and Minister of Justice

Just two weeks ago, our government announced a preliminary framework for liquor sales in B.C. grocery stores - a framework based on promoting B.C. products, supporting jobs and economic growth and safeguarding health and public safety.

During our B.C. Liquor Policy Review, we heard the need for substantive changes to our liquor laws - but loudest of all was the desire for the increased convenience that liquor in grocery stores could provide. That's why we are proceeding with both a store-within-a-store model, and a limited number of licences that would allow BC VQA wine to be sold off grocery shelves.

That said, it is premature to speculate about what the retail landscape will look like, once our grocery framework is finalized and implemented in early 2015. This is because policy work on B.C.'s grocery model continues, as does work to clearly define what constitutes a 'grocery store.'

There are several other variables, which need to be taken into consideration, that will impact the number of grocery stores that sell liquor. First, and contrary to some media reports, a Licensee Retail Store (LRS) located within one kilometre of a grocery store can, under certain circumstances, transfer or relocate its licence into a grocery store.

The reason we are keeping the one-kilometre rule in place is to help ensure we can maintain or improve on current protections for health and public safety, while avoiding market concentration.

Second, we cannot predict what individual businesses and licensees will choose to do. When the five-kilometre rule (the distance a LRS can relocate outside of its current jurisdiction) is eliminated, some liquor outlets may choose to relocate their licence to a different community. This would open up the possibility of another liquor store taking its place within a grocery store.

What this means is that, once the grocery model is finalized and in place, it will come down to a business decision for the grocery store in terms of whether they want to sell liquor. Likewise, it will be up to LRSs and BC Liquor Stores to determine whether they are interested in transferring or relocating their licences. A free market will determine the extent and number of licences that end up moving locations, be it in the Lower Mainland or in B.C.'s smaller communities.

Finally, right now, B.C. sees continuous movement of LRS licences - approximately 20 licences relocate each year, under the current, more restrictive rules. As you can understand, this also makes it difficult to make any assumptions at this point about what the final landscape will look like.

Even once our grocery framework is in place and implemented, we do not expect changes will happen overnight. It will ultimately be up to the market to shape B.C.'s liquor retail environment and determine what these changes will look like over the long-term - resulting in a phased-in approach, as recommended by Parliamentary Secretary for Liquor Policy Reform John Yap.

Coming out of our Liquor Policy Review, it's clear British Columbians want more convenience and that the industry would like a more level playing field. We are confident the changes we are making will do just that.